PFS Bancorp, Inc.

PFS Bancorp, Inc. is a Maryland corporation organized in March 1994 to serve as the savings and loan holding company for Penn Federal Savings Bank. PFS Bancorp, Inc. owns all of the outstanding common stock of Penn Federal Savings Bank. The company's common stock trades on the Nasdaq Global Market Tier under the symbol "PFSB." Both PFS Bancorp, Inc. and Penn Federal Savings Bank are regulated, examined, and supervised by the Office of Thrift Supervision of the Department of the Treasury and the Federal Deposit Insurance Corporation. Penn Federal Savings Bank is a member of the Federal Home Loan Bank System, and its deposits are insured by the FDIC up to applicable limits. PFS Bancorp, Inc. operates as a community-oriented financial institution, providing a range of financial services. The company gathers deposits from the public and uses these funds, along with borrowings, to originate and purchase one-to-four-family residential mortgage loans. To a lesser extent, it also originates commercial and multi-family real estate loans and consumer loans. Additionally, the company invests in mortgage-backed securities secured by one-to-four-family residential mortgages, U.S. government agency obligations, and other permissible investments. The company offers various deposit accounts with different interest rates and terms, including savings, money market, checking, and certificate accounts. Deposits are generally solicited within its primary market areas. As of June 30, 2006, PFS Bancorp, Inc. reported total assets of approximately $2.3 billion, deposits of $1.4 billion, borrowings of $748 million, and stockholders' equity of $123 million. Penn Federal Savings Bank also offers uninsured non-deposit investment products and, through its wholly-owned subsidiary, Penn Savings Insurance Agency, Inc., provides insurance products to its customers.